Encompass Health Corporation reported a significant increase in its financial performance for the fiscal year ending December 31, 2025, with net operating revenues reaching $5.94 billion, a 10.5% increase from $5.37 billion in 2024. The growth was primarily driven by a rise in patient discharges, which totaled 263,299, up from 248,498 in the previous year. The company also noted an increase in net patient revenue per discharge, which rose to $21,862 from $21,048 in 2024. This growth in revenue was complemented by a net income of $759.1 million, reflecting a 27.2% increase compared to $596.6 million in 2024.
In terms of operational developments, Encompass Health expanded its network by opening several new inpatient rehabilitation hospitals throughout 2025, including facilities in Georgia, Florida, and Connecticut. The company also added 177 new beds to existing hospitals, contributing to its capacity growth. As of December 31, 2025, the company operated 173 hospitals across 39 states and Puerto Rico, with a total of 11,465 licensed beds. The company’s workforce also grew, employing over 42,000 individuals, with a focus on recruiting and retaining qualified clinical personnel amid ongoing staffing challenges in the healthcare sector.
The company’s strategic initiatives included a focus on enhancing relationships with healthcare systems and payors, particularly in the Medicare Advantage space, which accounted for 16.4% of total revenues. Encompass Health emphasized its commitment to delivering high-quality, cost-effective patient care, which it believes differentiates it from competitors. The company also reported that 148 of its hospitals held stroke-specific certifications, underscoring its focus on specialized rehabilitative care.
Looking ahead, Encompass Health expressed optimism about its growth prospects, driven by demographic trends such as an aging population and an increasing number of Medicare enrollees. The company anticipates continued demand for its services, particularly as the average age of its Medicare patients is approximately 77 years. However, it acknowledged potential challenges, including regulatory changes and competition from other healthcare providers, which could impact its ability to maintain volume growth and profitability. The company remains committed to adapting to the evolving healthcare landscape while continuing to invest in its operations and shareholder returns.
About Encompass Health Corp
Encompass Health is a leading provider of post-acute healthcare services, primarily operating inpatient rehabilitation hospitals across the U.S. The company specializes in rehabilitative care for patients with neurological, orthopedic, and other medical conditions, serving mostly Medicare and managed care patients. Its business model emphasizes high-quality outcomes, cost efficiency, strategic partnerships, and technological innovation to deliver comprehensive, patient-centered recovery services.
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